Early Access to Super Benefits

The Government has recognised that business downturn and high unemployment levels provide significant financial hardship for all Australians.

The ATO has approved early access to superannuation benefits where members meet one or more of the following eligibility requirements:

Unemployment; or

Members are eligible to receive a job seeker payment, youth allowance for jobseekers, parenting payment (which includes the single and partnered payments), special benefit or farm household allowance; or

On or after 1 January 2020 any of the following happened:

the member was made redundant; or

their working hours were reduced by 20% or more; or

if they are a sole trader — their business was suspended, or there was a reduction in turnover of 20% or more

Members can apply for early release of super through their myGov account from 20 April. An amount of up to $10,000 can be applied for during 2019-20 and up to a further $10,000 in 2020-21.

Financial Impact

The Government has stated that no tax is payable on the amounts
released under these circumstances and any money withdrawn does not affect
Centrelink or Veterans’ Affairs payments.

Early access to super, however, shouldn’t be viewed as a
windfall. In light of the current economic circumstances, it is recommended
that SMSF trustees seek financial advice where necessary.

ASF Audits Approach

We have always worked on the premise that SMSFs must operate in a commercial framework and remain compliant.

The impact of COVID-19 has not changed our approach.

We are here to answer your questions, help you with any issues you may have throughout the audit and provide guidance during this confusing time.

In the coming weeks, ASF Audits will be announcing a new digital initiative to help our clients, and the SMSF industry in general, to chart these unmarked waters.

In the meantime, stay healthy and safe.

ASF Audits is the home of one-click SMSF auditing. Contact us on 1800 327 872 for more information.